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Munich. The BMW Group continues to focus on the implementation of its
electro-mobility strategy, with the company concentrating all its
technological expertise relating to battery cells at a new
competence centre. Klaus Fröhlich, member of the BMW AG
Board of Management, responsible for Research and Development, and
Oliver Zipse, member of the BMW AG Board of Management, responsible
for Production, were joined by Bavarian Minister of Economic Affairs
Ilse Aigner for the symbolic ground-breaking of the BMW Group
Battery Cell Competence Centre in Munich today. This
interdisciplinary competence centre aims to advance battery cell
technology and introduce it into production processes. The company
will invest a total of 200 million euros in the location over the
next four years, creating 200 jobs. The centre will open in early 2019.

Speaking at the ground-breaking ceremony, Klaus Fröhlich said:
“We will be concentrating all our in-house expertise along the
battery-cell value chain at our new high-tech competence centre.
International experts working in the new development labs and
facilities will conduct important research to refine cell chemistry
and cell design. We will focus on further improvements in battery
performance, lifespan, safety, charging and also costs. We will set
the benchmark for the industry.”

Oliver Zipse added: “By producing battery-cell prototypes, we
can analyse and fully understand the cell’s value-creation
processes. With this build-to-print expertise, we can enable
potential suppliers to produce cells to our specifications. The
knowledge we gain is very important to us, regardless of whether we
produce the battery cells ourselves, or not.”

Ilse Aigner said: “With its competence centre for battery cell
technology, BMW is making another major investment in Bavaria. This
shows a clear commitment to our state as an industrial, high-tech
manufacturing location. Battery cells are a key technology on the
road to emission-free mobility. Bavaria is at the forefront of
electromobility – a position we will continue to expand to secure
long-term growth, prosperity and jobs.”

The BMW Group’s Strategy NUMBER ONE > NEXT
makes electromobility, digitalisation and autonomous driving clear
technological focus points, strengthening Germany’s position as an
innovation driver for mobility and the future technologies. As the
leading supplier of premium mobility, the BMW Group concentrates on
customer needs and wishes, playing a decisive role in advancing the
ACES topics (Autonomous, Connected, Electrified and Services).

The battery cell is the heart of the battery. It determines
performance, energy content, charging capabilities and lifespan,
thereby making a significant contribution to the performance of an
electrified vehicle.

In the labs, research and prototyping facilities, which will
make up the battery cell competence centre, specialist departments
will analyse cell design and cell technology. They will also create
prototypes of future battery cells, focusing on the chemical
composition of the cells, use of different materials, how the cell
behaves in critical or extremely cold conditions, charging and
rapid-charging behaviour and evaluating cell sizes and forms. This
in-house technological expertise is key to enhancing the battery,
thereby enabling higher performance capabilities.

The BMW Group will also gain build-to-print expertise and can
then contract out production of battery cells produced to its exact
product requirements and specifications. This core competence –
which covers the entire value chain from selection of materials,
cell design, integration into battery systems, manufacturability and
production technologies – gives the company a definite competitive
edge, while leveraging cost benefits and economies of scale.

The BMW Group has already completed years of research into
battery cells and acquired a high level of evaluation competence,
especially through the development of the BMW i models. The company
will concentrate know-how from various specialist departments and
locations at the new Battery Cell Competence Centre and step up its
efforts in this area to achieve faster impact. Research findings
will be incorporated directly into the latest battery generation.

Fifth generation of BMW Group electric drivetrains from 2021:
electric motor, transmission and power electronics form new component

The BMW Group is already developing the fifth generation of its
electric drivetrain, for release in 2021, in which interaction
between the electric motor, transmission, power electronics and
battery have been further optimised.

A decisive advantage of this future electric drive is that the
electric motor, transmission and power electronics are combined in a
new and separate electric-drive component. With its compact design,
this highly integrated new component takes up significantly less
space than the three separate components used in previous
generations. Its modular concept means that it is also scalable and
can be modified for a wide range of different packages and
performance levels, increasing flexibility and making it easier to
install the new electric drivetrain component in different vehicle
derivatives. Integrating the electric motor, transmission and power
electronics into a single component uses fewer parts and therefore
saves costs.

A further highlight is that the new electric motor does not
require the use of rare earths, making the BMW Group no longer
dependent on their availability.

The fifth-generation electric drivetrain also uses new, more
powerful batteries. Their scalable, modular design means they can be
used flexibly in the respective vehicle architecture at different
production sites.

Thanks to further development of the battery in particular, the
new electric drivetrain extends the range of pure battery-electric
vehicles to up to 700 km. In plug-in hybrid models, distances up to
100 kilometres are possible. In this way, the BMW Group continues to
expand its innovation leadership in this field.

With the electric motor and battery developed and produced
in-house, the BMW Group already possesses a high level of core
competence and value creation for electric drivetrains. In-house
production gives the BMW Group a decisive competitive advantage, by
securing know-how in new technologies, gaining important systems
expertise and leveraging cost benefits.

The flexibility of the new electric drivetrain component and
upgraded modular battery will continue to ensure the BMW Group’s
freedom of action in the future. Thanks to the scalable electric
modular systems, from 2020 it will be possible to fit all model
series with any drivetrain, according to demand. The
fifth-generation electric drivetrain achieves high levels of driving
performance and good range with much less weight. It will be
integrated into both front- and rear-wheel drive flexible enhanced
vehicle architectures, which will also be suitable for all drive
forms. This flexibility means the company will be able to meet the
predicted demand for several hundred thousand electrified vehicles
in 2025.

International production network

The BMW Group benefits from a highly flexible production network
that can respond quickly to demand for electrified models. All
electrified vehicles are integrated into the existing production system.

The company already produces electrified vehicles at ten
locations worldwide. The batteries needed for these models come from
the three battery factories in Dingolfing, Germany, Spartanburg in
the USA and Shenyang, China. The BMW Group plant in Dingolfing plays
a leading role within the network as the centre of competence for
electric drive systems.

BMW Group leading manufacturer of electrified vehicles
worldwide

Between January and the end of October, the BMW Group delivered a
total of 78,096 BMW i, BMW iPerformance and electrified MINI vehicles
to customers worldwide – an increase of 63.7% on the previous year.
With nine electrified cars currently available, the BMW Group is one
of the leading manufacturers worldwide. The company is well on track
to sell 100,000 electrified vehicles worldwide by the end of the year.